Managing capital flows and liquidity demand has been a central issue for emerging-market countries. In an era of global imbalances, rapid accumulation of foreign exchange reserves by surplus countries is also an issue for the international system. In a well-functioning international financial...

In this paper, we divide the players of a large game into countable different groups and assume that each player’s payoff depends on her own action and the distribution of actions in each of the subgroups. Focusing on the interaction between Nash equilibria and the best response correspondence...